USD/CAD refreshes weekly lows, around mid-1.3000s ahead of US/Canadian jobs data

   “¢   The ongoing USD slide kept exerting downward pressure for the second straight session.
   “¢   Falling crude oil prices do little to undermine Loonie or lend any support/stall the downfall.
   “¢   The latest monthly jobs report, especially NFP, might help determine the near-term direction.

The USD/CAD pair remained under some selling pressure through the mid-European session and dropped to fresh weekly lows, around mid-1.3000s in the last hour.

The ongoing US Dollar corrective slide from near 17-month tops, despite a goodish pickup in the US Treasury bond yields, was seen as one of the key factors behind the pair’s downward momentum for the second consecutive session.  

The pair extended overnight retracement from seven-week tops and seemed rather unaffected by the prevalent weaker tone around crude oil prices, which tend to undermine demand for the commodity-linked currency – Loonie.  

Today’s weakness could further be attributed to some technical selling/follow-through long-unwinding below 100-day SMA as market participants reposition for today’s key event risk – the release of monthly jobs reports from the US and Canada.

The Canadian monthly employment details are likely to be overshadowed by the US NFP report, which might influence Fed rate hike expectations and eventually drive near-term sentiment surrounding the buck/provide a fresh directional impetus.

Technical levels to watch

A follow-through selling pressure has the potential to continue dragging the pair towards the 1.3020 region (50-day SMA) en-route the key 1.30 psychological mark. On the flip side, momentum back above 1.3075 region (100-day SMA), leading to a subsequent strength beyond the 1.3100 handle could lift the pair back towards the 1.3160-70 supply zone.